Ally Financial (ALLY) Stock Added to Jefferies ‘Franchise Pick’ List

NEW YORK (TheStreet) -- Ally Financial (ALLY) was added to the "Franchise Pick" list at Jefferies.

The firm said it added the auto finance company to this list, as it believes the market under appreciates recent changes in Ally Financial's capital structure.

"We recently raised earnings estimates, and our '16 EPS estimate is now about 6% ahead of a rising consensus. We also note that Ally is likely a beneficiary of macro trends including improvements in wage growth and ongoing strength in auto sales," Jefferies said in an analyst note.

Shares of Ally Financial are down by 0.13% to $23.46 at the start of trading on Friday morning.

Ally Financial is a Detroit, MI.-based bank holding company that operates by offering a variety of financial services.

Separately, TheStreet Ratings team rates ALLY FINANCIAL INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ALLY FINANCIAL INC (ALLY) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk, weak operating cash flow and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

Bank of America Just Topped Warren Buffett's Dividend Benchmark

Tougher Auto-Lending Terms Compound Ford's Self-Driving Problem

Auto ABS Shows Market Weakness

Ally, Santander Face Reckoning After Auto-Lending Boom, S&P Says